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MANILA - The Philippines' biggest dairy company said it is unlikely to raise prices after an earlier adjustment coupled with higher sales volume fuelled a rebound in its first-quarter performance.
"We're not contemplating anything as of the moment," said Wilfred Steven Uytengsu, Alaska Milk Corp. president and chief executive.
Higher sales volume coupled with selective price increases pushed the net income of Alaska Milk by 44 percent to P362.60 million in the first quarter from P252.30 million last year.
Uytengsu said raw material costs this year were not as pronounced as in 2011, when the company’s operating margin narrowed to 10.6 percent from the previous year's 19.1 percent.
"Our costs have come up a little bit but not significantly. It's supported by the topline side of the business," said Uytengsu.
"This year we're looking at a good year. Demand has been strong, sales have been strong and we see this continuing for the rest of the year. It's a favorable year," said Uytengsu.
Besides its flagship Alaska evaporated and condensed filled milk products, the company also produces the Alpine, Liberty and Krem-Top brands after acquiring these from Nestle in 2007.
Alaska Milk also manufactures and sells the Carnation and Milkmaid brands under a long-term license agreement with Nestle.
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